Dell Issues Earnings Warning

BRIEFCASE

October 19, 1999

Dell Computer Corp. on Monday said a recent 25 percent spike in prices for computer memory chip components it uses to build personal computers were likely to hurt results for the company's third-quarter ending later this month. Thomas Meredith, the company's chief financial officer, said he considers the effects of the industrywide memory-cost increase to be a short-term matter, but that Dell's third-quarter operating margins would be hurt. The company did not comment on how or whether the pressure on profit margins might translate into lower earnings per share.